Financial/Non-Financial Incentives:

Financial/Non-Financial Incentives:

Incentive can be defined as monetary or non-monetary reward offered to the employees for contributing more efficiently. Incentive can be extra payment or something more than the regular salary or wage. Incentive acts as a very good simulator or motivator because it encourages the employees to improve their efficiency level and reach the target. The two common types of incentives are Financial & Non Financial incentives (Michelle ,2017).

The reward or incentive which can be calculated in terms of money is known as monetary incentive. These incentives are offered to employees who have more physiological, social and security need active in them.Money is not the only motivator, the employees who have more of esteem and self actualization need active in them get satisfied with the non-monetary incentives only (Michelle ,2017).

The incentives which cannot be calculated in terms of money are known as non monetary incentives. Generally people working at high job position or at high rank get satisfied with non-monetary incentives.

The common means or ways of monetary and non-monetary incentives are:

Table 01: Financial/Non-Financial Incentives:

Financial Incentives	Financial/Non-Financial Incentives:
1. Pay and Allowances:	Status
2. Profit Sharing:	Organizational Climate
3. Co-Partnership/Stock Option:	Career Advancement
5. Bonus	Job Enrichment
6. Commis ion	Employee recognition
7. Co-Partnership/Stock Option:	Job Security
8. Productivity Linked with wage Incentives:	Employee participation
9. Perks/Fringe Benefits/Perquisites:	Employee empowerment

(Source : Michelle ,2017)  

          

Applicability of Motivation factors with my organization

According to the present HRM practice in the organization where I am working in Union Bank Colombo PLC, following benefits are provided to the employee .

ü Out Patient Allowance

ü Hospitalization cover

ü Vehicle Loan @4% p.a  - Loan amount will be depend on the grade of employee

ü Housing Loan @4% p.a - Loan amount will be depend on the grade of employee

ü Fuel Allowance

ü Free Annual fee and joining fee for credit card.

ü Loan to purchase electric item

ü Vehicle Allowance 

ü Training Programme

ü Annual staff get together , Dinner Dance and 2 Days all staff trip

Above mentioned benefits are offered by Bank as a motivational factor. It will be directly affected to the performance of the Bank and employee also.

References

Yang, H. (2008), ‘‘Efficiency Wages and Subjective Performance Pay’’, Economic Inquiry, 46(2), pp. 179–196.

Yazıcı, N. K., ‘‘the Effect of Reward System Applications on Employee Performance In Service Sector’’,(2008), Marmara University, Institute of Social Sciences, Master Thesis.

M & Shafighi, A. (2013). The Effect of Work Motivation on Employees’ Job Performance: International Journal of Academic Research in Business and Social Sciences, Vol. 3, No. 9 ISSN: 2222-6990.

Rowden, R.W. and Conine, C.T. Jr (2005), “The impact of workplace learning and job satisfaction in small US commercial banks”, Journal of workplace Learning, Vol. 17 No. 4, pp. 215-30